Who is typically not considered a general partner?

Study for the Liberty Tax School Test with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand. Prepare effortlessly and excel in your exam!

A silent partner, who typically invests capital into the business but does not engage in the day-to-day operations or management decisions, is not considered a general partner. General partners have the authority to make decisions, are actively involved in the management of the partnership, and usually assume unlimited personal liability for the debts and obligations of the business.

In contrast, silent partners operate mainly as investors who provide financial resources without taking on the same level of responsibility or involvement. Because they do not partake in the management or decision-making processes, they do not meet the criteria to be classified as general partners.

On the other hand, a partner who is financially liable for debts, one who has control over management decisions, and a partner who shares profits and losses all fit the characteristics of a general partner. They are directly involved in the operations and bear the associated responsibilities and risks of the partnership.

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